KUALA LUMPUR (May 31): Net profit for YTL Power International Bhd in the first quarter ended March 31, 2019 (1QFY19) fell 23.4% year-on-year despite stronger revenue, as its multi utilities business and water and sewerage business reported weaker earnings.

This resulted in 1QFY19 net profit dropping to RM111.26 million from RM145.36 million in the same quarter last year, even though revenue climbed 11.5% to RM2.89 billion from RM2.59 billion, with all segments achieving higher contribution during the quarter.

Consequently, quarterly earnings per share retreated to 1.45 sen from 1.83 sen, according to YTL Power's bourse filing.

Segmentally, the group's multi utilities business fell into the red with loss before tax (LBT) of RM86.54 million versus a profit before tax (PBT) of RM797.13 million previously, due to lower margin and higher costs. As for its water and sewerage segment, that was hit by higher depreciation charges which shrank its PBT by 27% to RM178.1 million from RM244.44 million.

The decline in the two businesses more than offset the higher PBTs recorded by its power generation arm (up 1.3% to RM193.88 million) on cost optimisation, smaller losses under its mobile broadband network (down 63.6% to an LBT of RM9.94 million) and the turnaround in its investment holding activities (PBT of 70.92 million versus LBT of RM19.62 million previously).

On prospects, YTL Power said its 80%-owned 660MW coal-fired power plant in Java, Indonesia, is heading towards achieving financial close.

In Singapore, its multi utilities business seeks to focus on customer services and diversification beyond its core electricity business into integrated multi-utilities supply.

On its mobile broadband network business, YTL Power said it has continued to implement the government-initiated 1BestariNet project to provide internet to schools in the country. "Plans are also underway to expand the Yes service in Sarawak," it added.

Shares of YTL Power rose half a sen or 0.6% to close at 84.5 sen today, giving the group a market capitalisation of RM6.49 billion.